Many are currently in the red due to inflation. This is simple and flexible, but costs too much as a permanent solution. Some banks charge more than 13 percent for the minus, others only half. A loan can also be cheaper. AK expert Christian Prantner explains the best way to save on interest.
According to a previous survey by the AK, 53 percent of Austrians have had their account overdrawn at least once. Presumably just as many people will have to accept a minus to make ends meet despite inflation. Even if there is no other option in the short term, the household budget will still be emptier, because being overdrawn is very expensive.
Despite the fact that other interest rates remain low, the banks charge high costs for this. “The institutes earn very well from it. On average you currently pay 10.5 percent, some even more than 13 percent,” says AK expert Prantner. And if you go over the overdraft limit assigned by the bank (usually 1-3 net monthly receipts), there comes another three to four percent Bee.
After all, the customers are not surprised by this. Prantner: “The banks have a legal obligation to advise. As soon as you have exceeded three months with 1.5 times your monthly income, you must be informed about the options for debt restructuring.” In general, customers can do a lot to reduce negative interest rates.
Find a cheaper bank
If you are often overdrawn, it is best to choose an account with the lowest possible “debit interest”. Easybank is currently the price breaker with only 5.9 percent. Other institutes are only half as expensive as the frontrunners.
Prantner advises that in response to these offers you can at least talk to your bank about a lower overdraft rate. “You have to maintain a longer customer relationship and good creditworthiness.” Furthermore, given the rather rising interest rate level, it might be better to agree on a fixed negative interest rate.
Switch to credit
With sufficient credit, a consumer credit to cover a deficit on the account costs up to about eight percent, excluding costs and insurance. With a very good creditworthiness, six percent (including additional costs) is possible. However, this is more than a short time ago. So it depends on the individual case whether this solution is ultimately better, says Prantner.
Loans are usually only available from around 3000 euros, in addition, you must ensure that the bank does not charge too expensive additional costs (processing costs, life insurance).
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
